Navigating Business Challenges: A Manager’s Guide to Effective Problem-Solving

It was a bright morning, and I felt recharged as I prepared for work. My weekend had been extended due to the presidential inauguration of Bola Ahmed Tinubu. Little did I know that this day would present me with a significant challenge in my role as a Supply Planning Manager.

As I settled into my office to prepare for the usual operations meeting with my supply chain director, my plans took an unexpected turn. A call from our Demand Planner delivered the news of a sudden and staggering surge in the demand for one of our slow-moving products. The projection indicated a demand increase of over 250 percent in the next six months.

My pleasant morning was swiftly clouded by the urgency of the situation. I had to act swiftly to determine if our current inventory could meet this unforeseen surge in demand. My analysis revealed that our existing stock was insufficient. This shortfall was due to our inventory policy, which required us to maintain a limited supply of slow-moving items to prevent them from expiring or deteriorating on our shelves.

The reality was that we were on the brink of running out of stock, a scenario that could potentially lead our customers toward our major competitors, significantly impacting on our market share for this product.

My immediate response was to reach out to our supplier in France to explore the possibility of expediting the shipment of this critical product to avoid running out of stock. However, the feedback from the supplier was disheartening; shipping by sea would take two months to reach Nigeria. With the knowledge that our existing inventory would likely be exhausted before the shipment’s arrival, I made the decision to airfreight the product, a process that would take just one week.

After factoring in the cost of airfreight against potential revenue losses from running out of stock, I proceeded to confirm the order with the supplier.

Shortly after confirming the order, I received an email from the Sales Director, who highlighted a new challenge. Following the president’s inauguration and the implementation of a policy to unify the exchange rate, the value of the dollar to the naira had doubled overnight. Given that a substantial portion of our products were imported, this policy change necessitated a price increase.

In my industry, experience has taught me that when a price increase is implemented with immediate effect, demand for our goods tends to slow down for approximately two months as the market adjusts to the new price. Ironically, the products I had just arranged for airfreight were among those slated for a price increase. This presented a unique dilemma; should I proceed with the import and risk potential write-offs if demand declined due to the price increase, or should I forgo airfreighting and risk stockouts?
This is a typical day in the life of a supply planner operating in the Nigerian market—an environment I would describe as “VUCA Pro Max” (Volatile, Uncertain, Complex, Ambiguous).

Amid a turbulent workday, a sudden surge in demand had me making rapid decisions about inventory and shipping. It was in moments like these that I recognized the need to move beyond impulsive reactions and seek a more structured approach to problem-solving and decision making. It was only when I enrolled in the Analysis of Business Problem class that I discovered a valuable tool—the Decision-making model. This model, which we’ll delve into shortly, serves as a reliable guide during times of uncertainty. Its step-by-step process includes:

1. Understanding the Situation: This initial step involves comprehending the context and circumstances surrounding the problem.
2. Identifying and Defining the Problem: In this stage, you pinpoint the specific issue or challenge that needs to be addressed. You need to be careful of not confusing symptoms with problems.
3. Defining Your Objective: Once the problem is identified, you establish your goal or objective. What do you want to achieve by solving this problem? Clarity in your objectives is crucial for measuring success.
4. Generating Alternatives: This step encourages brainstorming and creative thinking. It involves generating a range of potential solutions or approaches to address the problem. The goal is to think broadly and consider different options.
5. Identifying Criteria: You establish criteria or factors that will be used to evaluate the alternatives. These criteria help in assessing the pros and cons of each option, and they can include factors like cost, feasibility, time, and impact.
6. Analyzing the Alternatives Based on Criteria: Here, you evaluate each alternative against the identified criteria. This analysis helps in comparing the potential solutions and understanding their strengths and weaknesses.
7. Making a Choice: After thorough analysis, you decide by selecting the alternative that best aligns with your objectives and criteria. It’s essential to make a clear and well-informed choice.
8. Developing an Action Plan: The final step involves creating a plan for implementing the chosen alternative. This includes outlining the specific steps, assigning responsibilities, and setting a timeline for execution. An effective action plan ensures that the decision is put into practice successfully.

In conclusion, as business managers navigating the dynamic business landscape of Nigeria, you will encounter series of difficult challenges. Your ability to make informed decisions and tackle complex problems is required for success in this demanding environment.

It’s important to acknowledge that while your decisions may not always be the right or perfect solutions, your ability to craft an effective action plan can be a game-changer. Problem-solving is indeed an art, one that can be mastered through practice and the right set of tools.

Thank you for joining me on this insightful journey into the world of effective problem-solving for business managers. If you have any questions or would like to share your experiences, please feel free to do so in the comments.

In the complex realm of managing businesses in Nigeria, remember that every problem is an opportunity for growth, and every decision shapes the trajectory of your organization. Embrace the art of problem-solving, and may your endeavors be guided by wisdom and informed choices. Until we meet again, stay inspired, stay proactive, and stay successful.

#MMBA5 #PROBLEMSOLVING